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August 15-31, 2005 Edition
Reduces StaffNEW YORK, NY/8/10/05Houghton Mifflin reported today that sales in its trade and reference division declined 15.5% to $28.4 million for the quarter ended June 30, 2005.
The company cut in half the previous years losses of $8.4 million, reporting a decline this year of $5.4 million. Healthy gains in the first and second quarters of 2005 helped the company contain its losses, partly due to successes of major authors such as Jonathan Safran Foer, and the Oprah pick, The Heart is a Lonely Hunter. Houghton Mifflins educational divisions, including the K-12 unit, reported 3.2% increase to $344 million, also helped the company raise total operating income by 8.1%.
Houghton Mifflin is not alone in sales declines. Simon & Schuster reported a 5% loss for the same period, while Penguin and Time Warner both showed only small increases for the six-month period ending June 30.
On the heels of the report, Houghton Mifflin announced August 10 it is cutting 100 jobs at both its Boston headquarters and at other offices in Chicago, Philadelphia and San Francisco. The cuts represent about 1 to 2% of the worldwide staff of 4700.
The company hopes the layoffs, scheduled to occur in the third quarter of 2005, will boost profitability and further streamline efficiency of operations.
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